How to Start an LLC in Utah in 2024 (Step-by-Step)

If you’re considering forming a Utah LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file a Utah LLC Certificate of Organization.

But there’s more.

Forming your LLC in Utah costs $59, and it takes one to two business days to process if you file online or two weeks if you file by mail.

This guide compiles all the information you need to start an LLC in Utah today.

What Are the Steps to Start an LLC in Utah?

To start an LLC in Utah, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a Utah registered agent
• Step 3. File Utah LLC Certificate of Organization
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual business renewals
• Step 8. Finally, obtain any local permits or licenses.

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Select a Unique Name for Your Utah LLC

Choosing a name for your Utah LLC can be fun and creative. However, your name must be unique to stand out from others who have already registered.

Your LLC name must meet several criteria:

• Include critical phrases: Use “Limited Liability Company,” “Limited Company,” or the abbreviations “L.L.C.” or “L.C.”
• Be distinguishable: Your name must not be too similar to others on record.
• Avoid government references: Words like “IRS” or “Bank” cannot be used.
• Use English: Your name must be in English or use the English alphabet.

You can check Utah’s corporation division for more detailed guidelines on naming your Utah LLC.

Before you get too attached to a name, run a Utah LLC name search to ensure it’s available. You can reserve it by filing an Application for Reservation of Name for $22 if it is. This reservation lasts 120 days and expires at 5:00 p.m. on the 120th day.

If you want to do business under a different name, you need a Doing Business As (DBA) name. You can do this by filing an Assumed Name (DBA) Registration for $22.

Following these steps, you can confidently select a name that works for your business!

Step 2: Designate a Registered Agent in Utah

A registered agent acts as a point of contact for your LLC. They receive critical legal documents, like tax notices or lawsuits, on behalf of your business.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Utah:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Utah Registered Agents

Utah law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Utah?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Utah LLC Certificate of Organization

You must file the Certificate of Organization to start your LLC in Utah officially. This document tells the state who you are and provides vital details about your business. It includes essential information such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Certificate of Formation in Utah, follow these steps:

Step #1. Complete the Form: Obtain and complete the Certificate of Organization form from the Utah Division of Corporations website.

What to Include in the Certificate of Organization:

• Name of the LLC
• Address of the principal office
• Registered agent’s name and Utah street address
• Signature of the organizer
• Names and addresses of members
• Duration of the LLC
• Purpose of the LLC

Step #2: File Online or by Mail: You can file your Certificate of Organization online through the Utah OneStop Business Registration Website or by mailing the completed form to:

P.O. Box 146705
Salt Lake City, Utah 84114-6705

Step #3: Pay the Filing Fee: The filing fee is $59. For online submissions, pay with a credit card. For mail filings, pay with a check or money order.

Standard paper filings usually take about two weeks. If you need it faster, consider expedited filing for an extra $75, which guarantees processing in two business days. Online filings can often be completed within 24 hours.

After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare an Operating Agreement for your LLC

An operating agreement is a vital document for your LLC in Utah. It outlines how your business will operate and sets rules for the members involved.

This agreement is an internal document that defines each member’s roles, responsibilities, and rights. Without it, disputes among members can arise.

A well-prepared operating agreement is essential for your LLC’s success in Utah. It acts as a roadmap for your business operations and helps avoid misunderstandings.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Step 5: Obtain an EIN for Your LLC

An EIN, or Employer Identification Number, is a unique number assigned to your LLC by the IRS. It’s essential for various reasons, including:

• Opening a business banking account
• Applying for a business line of credit
• Obtaining certain permits
• Making contracts with wholesale vendors

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

After forming your LLC in Utah, it is important to file a Beneficial Owner Information (BOI) report, which provides vital information about the business’s owners.

Who Should File?

If your LLC is not exempt, you must file a BOI report. Exempt entities generally include larger businesses and certain government bodies.

When to File:

• Companies created before January 1, 2024, have until January 1, 2025.
• New companies formed between January 1, 2024, and January 1, 2025, must file within 90 days.
• LLCs formed after January 1, 2025, must report within 30 days.

How to File:

• Visit the FinCEN BOIR e-filing page.
• Choose from the options available:
  • Initial Report
  • Correct Prior Report
  • Update Prior Report
  • Newly Exempt Entity
• Select “Initial Report” for new filings and click NEXT.

Information Needed:

• Business Name and Address: Your LLC’s official name and primary location.
• Owner Information: Names, addresses, and dates of birth for each beneficial owner.
• Identification Numbers: This could include Social Security numbers or tax ID numbers.

Provide accurate and complete information to avoid delays. Filing this report is a legal requirement and helps maintain transparency in business operations.

Step 7: File Annual Renewal for your Utah LLC

The Utah Business Renewal, or Annual Renewal, is mandatory for every LLC operating in the state. You must file this report each year whether your business is active or inactive.

The cost of filing the Annual Report is $18, which must be paid every year for the life of your LLC.

You’ll need the Renewal Postcard the Utah Division of Corporations sent to complete the filing.

This postcard contains essential information such as your LLC’s Entity ID Number, the due date of your Annual Renewal, and your Renewal ID Number, which is required to access the online filing system.

The Renewal Postcard is sent to your Registered Agent approximately 60 days before the report’s due date. If you don’t receive or misplace this postcard, you can request the necessary details from the Division of Corporations.

Your Annual Report is due by the last day of your LLC’s anniversary month, the month your LLC was approved by the Utah Division of Corporations.

This date can be found on your approved Certificate of Organization or by searching for your LLC on the Utah Business Entity Search tool. The exact due date is also printed on your Renewal Postcard.

For example, if your LLC was approved on September 12, 2024, your anniversary month is March, and your first Annual Report would be due by September 30, 2025. Future reports will also be due by September 30 each year.

You can file your Annual Report as soon as you receive your Renewal Postcard, usually 60 days before the due date. The state also provides a 30-day grace period, allowing you to file late without penalty.

For instance, if your Annual Report is due on September 30, you can file anytime between October 1 and October 30 without incurring a late fee.

If you miss the grace period, you enter a Delinquency Period, which lasts an additional 30 days. During this time, your LLC is marked as “Delinquent,” you’ll need to pay a $10 late fee in addition to the $18 filing fee.

If you fail to file by the end of the Delinquency Period, the state will dissolve your LLC, and its status will be marked as “Expired.”

For example, if your due date is September 30 and you haven’t filed by November 30, your LLC will be dissolved and considered “Expired.” You will then need to take steps to reinstate the LLC if you wish to continue operating.

If your LLC is marked as “Expired,” the state will send an Expiration Notice to your LLC’s Principal Business Address, Registered Agent, and an LLC Member.

If you want to continue operating your LLC, you must file for Reinstatement within two years of expiration. The reinstatement fee is $54; you can file online or by mail.

If more than two years have passed since your LLC was marked as “Expired,” you’ll need to start over by forming a new LLC. To check the status of your LLC, you can use the Utah Business Entity Search tool.

If you no longer wish to operate your business, you can let the LLC expire without penalties. Afterward, you should file a final tax return and close your business’s bank account.

What are the Different Methods To Start a Utah LLC?

You have three main options to start your LLC in Utah. Each method has its process, advantages, and drawbacks. Understanding these can help you choose how to set up your business.

DIY LLC Formation in Utah

Forming an LLC by yourself is a straightforward option. You will fill out and submit the Utah Certificate of Organization and pay the required filing fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Utah?

If you’re looking to start an LLC in Utah on a budget, the most affordable option is to do it online. By filing the Certificate of Organization directly with the Utah Department of Commerce, you only pay the $59 filing fee.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Utah?

There are a myriad of Utah LLC services from which to choose. Choosing the wrong one can affect your Utah LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Utah LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Utah LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Utah?

Forming an LLC in Utah involves several costs. The primary expense is the $59 state filing fee for the Certificate of Organization, which is required to register your LLC with the Utah Department of Commerce officially.

Here’s a breakdown of the costs you may encounter in Utah LLC Formation:

Requirement	Cost
New Filing Fee (Certificate of Organization)	$59
Name reservation (optional)	$22
DBA Filing (optional)	$22
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual renewal fee	$18
Total Estimated Cost	$77 – $160

When forming a new company in Utah, it is ideal to budget about $77-$160 for the first year. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every Utah business owner is filing the Certificate of Organization, which costs $59.

Pros and Cons of Forming an LLC in Utah

6 Important Things To Do After Creating Your Utah LLC

After forming your LLC in Utah, there are several vital steps to ensure your business operates smoothly and meets legal requirements. These tasks will help set a solid foundation for your LLC.

1. Research the Best Licenses and Permits for Your Business

You may need specific licenses or permits to operate legally depending on your industry and location. Start by looking at the business licenses required by the state of Utah.

You can check the Utah Division of Corporations for information on state-level requirements.

Local governments may have additional regulations, so contact your city or county clerk’s office too.

Ensure you apply for the necessary licenses promptly to avoid any penalties.

2. Create Business Accounts for Your Utah LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds.

This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Utah Tax Requirements and Managing Your Taxes

Learn about the taxes your LLC needs to pay in Utah. Sales tax, income tax, and employment tax can impact your revenues.

Register for the correct tax accounts with the Utah State Tax Commission to comply with state laws.

Keep accurate records of your income and expenses throughout the year. This is essential for tax filings and helps identify potential deductions.

4. File Your Annual Report

In Utah, LLCs must file an annual report to maintain good standing. This report includes updated information about your business structure and owner details.

You can file your annual report online through the Utah Division of Corporations.

The filing fee is $18 and must be completed by the month of your LLC’s anniversary.

Failure to file can result in penalties and potentially dissolve your LLC, so stay on top of this requirement.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Setup Your Business Online Presence (optional)

Creating an online presence can help attract more customers and build your brand. Start by developing a professional website that showcases your products or services.

Claim your business on platforms like Google My Business and social media to expand your reach.

Consider adding a blog to share industry insights and connect with your audience.

Investing in online marketing can increase visibility and drive more traffic to your business. This optional step can be a vital part of modern business strategy.

Utah LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Utah, it’s essential to understand the differences between various structures. Choosing the proper structure depends on your business goals, the number of people involved, and the risk you want to take.

Sole Proprietorship

A Utah sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Utah partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too.

Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Utah corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Utah

Starting an LLC in Utah is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in Utah involves several key steps:

• Choose a name for your LLC.
• Designate a registered agent.
• File the Certificate of Organization with the state.
• Create an operating agreement for your LLC.
• Obtain an EIN from the IRS.
• File the BOI report if applicable.
• File annual business renewal.

The filing fee for the Certificate of Organization is $59.

After forming your LLC, prepare for annual business renewal, which costs $18 yearly.

These steps will help you establish your LLC correctly and meet state requirements.

Learn More About Starting an LLC in Utah

If you need additional help to start an LLC in Utah, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Utah?

Yes, you can change your registered agent in Utah. You must file a form with the Utah Division of Corporations and provide the new agent’s information.

How do I change my Utah LLC’s name?

You must file Articles of Amendment with the Utah Division of Corporations to change your LLC’s name. This process updates your LLC’s name in official records.

How do I renew my Utah LLC?

Renewing your LLC involves filing an Annual Renewal form with the state. This typically occurs on your renewal date each year and may require a fee.

How do I dissolve an LLC in Utah?

You must file Articles of Dissolution with the Utah Division of Corporations to dissolve your LLC. Ensure all debts are settled before starting this process.

How do I add a member to a Utah LLC?

To add a member, you should review your operating agreement. Then, amend the agreement if necessary and file any required documents with the state.

How do I add a DBA to an LLC in Utah?

To add a DBA (Doing Business As), you must file a Trade Name Registration with the Utah Division of Corporations. This allows you to operate under a different name.

Can a minor own an LLC in Utah?

Yes, a minor can own an LLC in Utah, but they may need an adult to act on their behalf in legal matters. It’s important to consult state laws regarding minors and business ownership.

When is the Utah Annual Renewal due?

The Annual Renewal for your LLC is due annually on the anniversary of your formation date. It’s essential to keep track of this date to avoid penalties.

Does LLC expire in Utah?

An LLC does not expire as long as you maintain compliance with state regulations and submit required annual renewals. Failure to do so can lead to dissolution.

Can a non-resident open an LLC in Utah?

Yes, non-residents can open an LLC in Utah. There are no state residency requirements for forming an LLC in the state.

Can I buy a house or car with my LLC in Utah?

In Utah, you can buy a house or car with your LLC. Ensure the purchase is made in the LLC’s name, and keep all records related to the transaction.

Can you have multiple businesses under one LLC in Utah?

Yes, running multiple businesses under one LLC in Utah is possible. You must keep separate records and may consider filing DBAs for each business.

Is Utah an excellent state in which to form an LLC? Is it worth it?

Utah is often considered a good state for LLC formation due to its business-friendly laws and relatively low fees. Assess your business’s specific needs to determine if it’s worth it.

Can one person form an LLC in Utah?

Yes, one person can form an LLC in Utah. A single-member LLC allows you full control over your business while still providing liability protection.